Agriculture

The Wee Waa District is a major producer of a variety of agricultural commodities including cotton, wheat, beef cattle and sheep. These industries demand much support in terms of supplies, equipment, expert advice and labour provision. The interdependent relationships between farmers, graziers and business organizations provides the economic basis upon which the Wee Waa Community thrives.

Angela Macdonald-Smith Energy Reporter SMH

A mega-merger between Santos and Origin Energy could drive $3 billion of cost synergies and help both weather rock-bottom oil prices, according to Credit Suisse.

The deal as envisaged by the bank's energy equities team would involve spinning off Origin's utilities business, while the oil and gas operations would be combined to create "Soritos E&P".

"We are struck by the beauty of both the industrial and political logic to the deal at a time when the companies are on their knees and the east coast market is staring down the barrel of an uncomfortable date with destiny," the analysts said in a note to clients.

A zero-premium merger would be the most logical structure for combining the two companies, which are both suffering from the impact of funding large liquefied natural gas projects in Queensland just as cash flows are being hit by plunging crude oil prices, they said.

Cameron England The Advertiser Adelaide

Santos shares have hit levels not seen since 1995 as the oil price continues to slide

SANTOS shares have plunged to a two-decade low despite vague takeover rumours floating around the market.

Santos stock was hammered on Tuesday, closing 26c, or 8.1 per cent lower at $2.95 — levels it has not touched since late 1995.

The Adelaide company’s shares have basically halved in each of the past two years to January, trading at $12.51 in January 2014 and $6.35 in January last year.

At the current share price, the company is worth about $5.2 billion, well below the value of its investment in its $US18.5 billion Gladstone liquefied natural gas plant, let alone its other assets such as its Cooper Basin oil and gas fields and the Moomba gas plant in South Australia, and its overseas and offshore Australian assets.

There was a rumour that the company was being considered as a takeover target by French oil giant Total — also a partner in GLNG — but those rumours were played down by analysts.